To get the best rate an understanding of the qualifications are necessary:
- Qualified rate - the percentage rate that's charged whenever a merchant accepts and processes a regular card using an approved processing solution.
- Mid-qualified rate - the percentage rate that's charged if a merchant accepts and processes a card that does not qualify for the lowest rate. This may happen when a card is manually keyed into a terminal instead of being swiped.
- Non-qualified rate - the percentage rate that's charged whenever a merchant accepts and processes a card that does not qualify for either qualified or mid-qualified rates. Not swiped, missing information, or not settled in the time allotment (typically 24-48 hours) will trigger the non-qualified rate.
- Batching - settling transactions within 24 hours to get the best possible rate.
- Interchange fee - percentage of the transaction to cover the authorization costs fraud and credit losses. To optimize interchange fees request processor to charge fee as it is incurred.
- Chargeback’s - when a cardholder disputes a transaction and it's returned to the acquiring bank. Ensure understanding of how the credit card processor handles chargeback’s.
"He that sells upon Credit, expects to lose 5 per Cent. by bad Debts; therefore he charges, on all he sells upon Credit, an Advance that shall make up that Deficiency." ~ Benjamin Franklin